Globe Syndicate
For
release
The
by Carol Abaya, M.A.
KEEP ASSETS IN ELDER’S NAME
ONLY
Question: I am 86, and my
children want me to “sell” my house to them for very few dollars. They say if I ever have to go into a nursing
home that the government will pay. Is
this true?
Answer: Before I address your
question about who will pay for nursing home care, I must advise you not to
sell your home to your children for “very few dollars.” If you sell to your children, you lose
control of your biggest asset and live in the house at the whim of your
children. If one or all of them have a
fight with you, they can throw you out at any time. Of course, there can be a clause that says you
have “life rights.” But this does not
protect you against differences of opinions and values that might exist among
your children.
If you
“sell” for less than the going market price, there are several severe tax
implications for your children. When they
want to sell after your death, they will have to pay capital gains taxes based
on that low artificial cost. This can
amount to thousands of dollars. Also, if
the price is very low the government might consider the transfer as a
gift. This impacts what you can Will
your heirs tax-free.
Also,
Medicaid (which you are expecting to pay for nursing home care can declare the
transfer as a gift and disqualify you from government benefits. The gifting look back period is now five
years.
The
government only pays for nursing home care if the person has less than $2,000
(or $3,000, depending on state) in assets.
Best
advice: keep the house in your name only.
Question: My mother, 88,
can no longer be cared for at home.
Several nursing homes have said we must deed her house to them if we
want her to be accepted. Must we?
Answer: NO! Carved in stone! Never, ever, transfer
ownership of a house or other assets to a nursing home, assisted living
residence or Medicaid. It’s illegal for
a nursing home or Medicaid to even ask you to transfer ownership of assets.
It is
also illegal for a nursing home to require a sizable up front payment as a
condition for admission.
If you
sell your mother’s home to pay for the nursing home, have someone in the family
pay the bill each month. Make sure that person has Durable Power of Attorney
for your mother.
Question: My father, 88,
has been in a nursing home for the past year, and his money is running
out. We’ve heard horror stories about
patients being thrown out of nursing homes or receiving little care. My father is getting agitated and
fearful. I don’t know how to calm him or
what to do.
Answer: If a nursing home is Medicaid certified, a patient cannot be to thrown out. In fact, the nursing home has the legal responsibility to help the patient (and family) file the papers for Medicaid.
Are you juggling doing errands for your aging parents, your children, yourself and working at the same time? Are you tired, stressed out and upset that your once vibrant parent is now frail and needy?
Do you feel alone? Rest assured you are not alone! The Sandwich Generation is dedicated to the 50 million Americans who may have elder/parent care concerns and/or responsibilities.
* * *
Do
you have a question? Send it in. Although letters cannot be answered
individually, appropriate letters will be answered in this column whenever
possible. Letters may be edited. Send letters to Ms. Carol Abaya,
mail direct to her at
Carol Abaya is an international-award-winning journalist and creator of the unique magazine The Sandwich Generation: You & Your Aging Parents.
NOTES TO EDITORS: text = 567 words; other material = 160 words
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